All you need to know about Corporate Governance

What is Corporate Governance and why should companies have it?


Corporate Governance is a series of guidelines, procedures and principles that rule the way a company functions. It is stipulated by de administrative Council, shareholders, investors or Board of a company, people who seek to add value to the business.

It is great tool for institutionalization. Also, it’s important to keep in mind that before the global context of the corporate sector, having a Corporate Governance is vital to stand out in the market and become more competitive.

Mistakenly, it’s believed that Corporate Governance can only be implemented in big or family companies. However, this concept brings benefits to all kind of businesses, no matter the industry they belong to or the number of employees they have.


What does a Corporate Governance includes?

Internal control: Rules and protocols that have to do with finances, administration, Human Resources, etc.

Government organs: Relations and duties have to be defined. This goes for the Board, the administrative Council, shareholders, investors, managers, etc.

Corporate politics: All politics are described. This goes for investment projects, M&A, succession plans, etc.

Compliance: Processes that will guarantee the fulfillment of current normative have to be established.

Risk management: Monitoring plans are defined in case of internal or external risks.


Which are the benefits of having a Corporate Governance?

Facilitates bank credits.

It is necessary for stock matters.

More transparency in transactions.

Better relationships with investors, shareholders and clients.

Can reduce costs by avoiding or controlling risks.

Improves performance by assigning resources the correct way.

More company value.

If you still don’t have a Corporate Governance in your business, or want to modify the one you have, contact us. Our consultants can help you design and implement it.